publishing in a down economy
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RISE ABOVE THE RECESSION
Publishing in a Down Economy
Assess Performance Innovate Protect Profits Revenue Diversification Partnering Staff Consolidation and Retraining Accountability
Getting Through Dark Times
Assess Performance Strategy first, cost-cutting second.
Cutting costs across the board seldom leads to effective results.
Focus on balance and getting operations in their best possible shape for the long term.
Getting Through Dark Times
Assess Performance Strategy first, cost-cutting second
What's needed is a clear sense of purpose around which to rally people's imagination, so that your core activities are done very well while those things that are less central are eliminated altogether.
Your value proposition to management/board, readers, and advertisers must be clearly stated and communicated consistently.
Getting Through Dark Times
Assess Performance Beware the hidden dependencies among different
parts of your operations when you are evaluating areas to cut.
Analyze the what’s in your business. What's" are the specific things a business needs to
accomplish, as opposed to the process they typically use to accomplish it.
Some are high value; some are not. Understanding the difference can give you great insights into where you can safely pare away and where you should leave well enough alone.
Getting Through Dark Times
Assess Performance Key areas to review include:
Finance sources of income, cash flow, expenses as a percentage of revenue
Getting Through Dark Times
Assess Performance Key areas to review include:
Advertising adv to editorial ratio within the pages of your
magazine, raise rates annually, net income per page, be strategic with targeting and time management in
adv sales cost of sales – range spent is typically 20 to 22% of all
income for the publication
Getting Through Dark Times
Assess Performance Key areas to review include:
Content are there ways you can use the content you have
created for the print magazine in other formats that can generate revenue?• books – example: Kentucky Living, Tennessee• e-newsletter – example: Alabama Living• Web site – example: ?
Getting Through Dark Times
Innovate
Tap into your staff and audience for revenue generating ideas/products and services
In a recession, everyone should be in marketing
Getting Through Dark Times
Innovate
“The magazine industry's problems are purely due to business cycles. Growth will eventually come back to the industry.
"Don't expect the economic crisis to be the end of the crisis for analogue media. This is a profound structural revolution; don't be like the auto industry that waited too long.“
Getting Through Dark Times
Innovate
“Think out of the box. Don't wait for a new business model to come out of the sky. There will be no new business model, no Holy Grail, no one-size-fits-all solution for the print industry. Each title or media needs to find its own way."
Getting Through Dark Times
Innovate “Don't waste the crisis. Use the time to start thinking.
As an adman, I'm always surprised how little you take advantage of your great brands. You have built communities long before the internet started. Why don't you leverage this better? The optimist and the pessimist are born the same and die the same -- the difference is that they live differently. I urge you to live differently. Everything is possible."
• Publicis Groupe CEO Maurice Levy
Getting Through Dark Times
Protect Profits Improve competitive tracking
Other publications and websites in your topic area What type of content do they offer? What opportunities do they offer for adv and
sponsorships? Realign priorities Enhance customer relationships Leverage pricing and maximize revenue
Getting Through Dark Times
Revenue Diversification Determining health of your publishing operation by
print metrics alone does not place you in a good position
Getting Through Dark Times
Revenue Diversification More sources of revenue than ever before
Many consumer publishers are generating income in some combination of the following:• Print advertising 50-60%%• Data 10-15%• Online 5-8%• Subscriptions & single copies 15-20%• Events 5-8%• Custom publishing 10-12%[Bold signifies increasing importance]
Getting Through Dark Times
Revenue Diversification As publishers continue to “evolve” publishing in multiple
platforms, the foundation of all thinking is a 360 view of the audience. [Current research is necessary.]
How are new community members coming into your world?
Why are they going online? (research, price comparison, buying, etc.)
What are they buying, how are they using your content, information, advertising, and e-newsletters?
Think “mind map” vs. “road map” for business development
Getting Through Dark Times
Revenue Diversification What revenue streams are your customers driving
now or what do you want to monetize in the future?
Circulation revenue Print advertising revenueOnline advertising revenue DataE-commerce LicensingWebinars Mobile/PodcastsRSS WidgetsVideo E-commerceInteractive programs & services Digital editions
Getting Through Dark Times
Partnering Who are your partners?
From content development to marketing to back office functions Extend your brand (open new markets), expand
offerings and revenues and reduce start-up costs Shared learning
A large opportunity exists for partnering within the SEA
Getting Through Dark Times
Partnering Possibilities Academic institutions Non-profits Aligned member organizations Advertisers Retailers Other publishers (examples: Hanley Wood & Meredith;
Economist & Uptown) Other web sites
Getting Through Dark Times
Staff Consolidation and Organization Smaller, more flexible work force with diverse skills
Cross train Organization: content/revenue generation/operations Compensation issues
Getting Through Dark Times
Accountability With customers and advertisers
Audience measurement is evolving Expanding depth and transparency
• Cross platform• Engagement• Issue specific data
Getting Through Dark Times
Publishers that embrace these realities can survive, develop new revenue, effectively manage their resources, develop a strong team, position for strong growth going forward.
Getting Through Dark Times
Sabatier Consulting LLC607 Greenwich Street
Falls Church, VA 22046703.536.2635
www.sabatierconsulting.com
Thank you.